Interest on late reimbursement of War Hazards Compensation Act claims

(a) Findings Congress finds the following: (1) The War Hazards Compensation Act (42 U.S.C. 1701 et seq.) (in this Act referred to as the WHCA) relies on private insurance carriers to advance payment of compensation to covered employees, often for extended periods, before reimbursement by the United States. (2) Delayed reimbursement imposes substantial carrying costs on insurance carriers and insured employers. (3) Persistent delays in reimbursement discourage insurer participation under the WHCA and threaten the availability and affordability of insurance coverage for employers engaged in overseas and national defense related activities. (4) Under the WHCA, there is no provision for the accrual of interest on late WHCA reimbursements, which effectively shifts the cost of Federal delay onto insurance carriers. (b) In general Title I of the War Hazards Compensation Act (42 U.S.C. 1701 et seq.) is amended by adding at the end the following new section: 108. Interest on late reimbursement (a) Designation of completion of reimbursement submission (1) Complete reimbursement submission A claim for reimbursement made pursuant to section 104(a) shall include the following: (A) All forms prescribed by the Secretary for reimbursement under this title, including Form CA–278 (Claim for Reimbursement of Benefit Payments and Claims Expense Under the War Hazards Compensation Act) as provided by the Office of Workers’ Compensation Programs of the Department of Labor or any successor or substantially similar form. (B) Documentation relating to the payment of benefits for which reimbursement is sought. (C) Any additional information specifically requested by the Division of Federal Employees’ Compensation of the Department of Labor (in this section referred to as DFEC). (2) Acknowledgment requirement Not later than 14 days after receipt of a claim for reimbursement as described under paragraph (1), DFEC shall issue a written or electronic— (A) acknowledgment that such claim for reimbursement is accepted; or (B) notice of any specific deficiency of such claim for reimbursement preventing such acknowledgment. (b) Deemed complete designation If DFEC does not issue an acknowledgment or deficiency notice as required under subsection (a)(2), such claim shall be deemed to have been acknowledged under subsection (a)(2)(A) on the date on which DFEC received such claim. (c) Commencement of interest Interest shall accrue at the overpayment rate established under section 6621 of the Internal Revenue Code of 1986 on the amount owed with respect to a claim for reimbursement under section 104(a) beginning on the date that is 60 days after the date on which an acknowledgment is issued under subsection (a)(2)(A).. (c) Treatment of outstanding claims for reimbursement For the purposes of section 108(a)(2)(A) of the WHCA, as added by the amendments made by this section, any insurance claim for reimbursement made pursuant to section 104(a) of the WHCA that is outstanding on the date of enactment of this Act shall be deemed to have been acknowledged on the date of enactment of this Act. (d) Implementing regulations Not later than 180 days after the date of enactment of this section, the Secretary of Labor shall promulgate regulations to carry out the amendments made by this section.